Answered step by step
Verified Expert Solution
Question
1 Approved Answer
BLEM 5-3 CASH F The following ended Ashad 236 Accounting for Financial and Managen CASH FLOW STATEMENT-DIRECT METHOD Decisions and Control The comparative balance sheet,
BLEM 5-3 CASH F The following ended Ashad 236 Accounting for Financial and Managen CASH FLOW STATEMENT-DIRECT METHOD Decisions and Control The comparative balance sheet, income statement and additional information are extracted f PROBLEM 5-3 Sharma & Sis's Company. Assets Current assets: Cash Accounts receivable. Inventory Prepaid expenses..... Non-curre Sharma & Sis's Company Comparative Balance Sheet As on Ashadh 31, 2078 current assets Land Land Building ........... Accumulated depreciation-building Equipment Accumulated depreciation- equipment Total assets......... Liabilities and stockholders' equity: Current liabilities Accounts payable....... Income tax payable Long-term liabilities Debentures Stockholders' equity Common stock........ Retained earnings... Total Liabilities and stockholders; equity...... Sharma & Sis's Company 2078 (Rs) 55,000 2077 (Rs) 33,000 20,000 15,000 30,000 5,000 10,000 1,000 20,000 40,000 (5,000) 130,000 160,000 (11,000) 27,000 (3,000) 398,000 10,000 (1,000) 138,000 28,000 6,000 12,000 8,000 130,000 20,000 70,000 50,000 164,000 48,000 398,000 138,000 Sales Reven Less: Cost of Gross Prof Selling gene Salaries an Depreciatio Insurance Selling exp Operatin Other Inc Interest r Gain on s Loss on Net Inc Interest Net Ind Income Net In e. Gross margin For the year ended Ashadh 31, 2078 Particulars Income Statement Amount (Rs.) Amount (Rs.) Asse Cash Sales revenues............ 507,000 Acco Less: Cost of goods sold 150,000 Inve 111,000 357,000 Prep Tot 9,000 Inv 3,000 Lan 42,000 165,000 Pro 192,000 Ac 47,000 To 145,000 T Less: Operating expenses Depreciation Loss on sale of equipment. Interest paid Income before income tax Income tax expenses Net income........ Additional Information: a The company declared and paid a Rs. 29,000 cash dividend. b d. Issued debentures Rs. 110,000 in direct exchange of land. A building costing Rs. 120,000 and equipment costing Rs. 25,000 was purchased for cash. The company sold equipment with a book value of Rs. 7,000 (cost Rs. 8,000, there accumulated depreciation Rs. 1,000) for Rs. 4,000 cash Depreciation charged of Rs. 6,000 for building and Rs. 3,000 for equipment. Required Cash flow statement under direct method. Ans: CFOA Rs. 172,000; CFIA (Rs. 141,000): CFFA (Rs 1
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started